Corporate Accounting MCQ 2023: We have described about 30 important corporate accounting mcq with answer pdf are given below. Accounting plays a important role in running a business because it helps you track income and expenses etc. Accounting is a great course to study for many reasons. Accounting gives you skills and knowledge that can be applied to many number of industries. In fact, as long as there are businesses in the world, accountants will always be needed.
Table of Contents
1. Overview – Corporate Accounting MCQ 2023
| Article Name | Corporate Accounting |
| Category | MCQ |
| Number of Questions | 30 |
2. Questions and answers
1. What is the term used to describe the time between the acquisition of assets for processing and their realization in cash or cash equivalents?
A. turnover
B. processing cycle
C. operating cycle
D. turnaround
Answer: operating cycle
2. When is offsetting permitted under Ind AS 1?
A. never
B. always
C. when approved by the board of directors
D. when required or permitted under an ifrs
Answer: when required or permitted under an ifrs
3. What is the net amount an entity expects to obtain for an asset at the end of its useful life?
A. present value
B. residual value
C. depreciated value
D. fair value
Answer: residual value
4. What is the transition date of IFRS in India?
A. april 1, 2010
B. april 1, 2012
C. april 1, 2011
D. april 1, 2008
Answer: april 1, 2011
5. Where should extraordinary items appear in an entity’s Statement of Comprehensive Income?
A. nowhere
B. income statement
C. notes
D. other comprehensive income
Answer: nowhere
6. Under Ind AS 16 how often the useful life of an asset should be reviewed?
A. every six months
B. at least at each financial year end
C. never
D. at management’s discretion
Answer: at least at each financial year end
7. Correcting the recognition measurement and disclosure of amounts in financial statements asif a prior period error had never occurred. This is:
A. changes in accounting estimate
B. retrospective restatement
C. retrospective application
D. delayed application
Answer: retrospective restatement
8. GAAP stands for
A. generally allowable accounting practice
B. generally allowable accounting principles
C. globally accepted accounting practice
D. generally accepted accounting principles
Answer: generally accepted accounting principles
9. Which sections of an annual report do IFRSs apply to?
A. financial statements
B. management report
C. entire annual report
D. auditors report
Answer: financial statements
10. Under Ind AS 16, which of the following is not allowable as a directly attributable cost of a machine?
A. site preparation
B. initial test batches
C. delivery
D. estimated dismantling costs
Answer: initial test batches
11. Which of the following disclosures is not required when an asset is revalued?
A. revaluation surplus
B. whether valuer was independent
C. name of valuer
D. effective date of revaluation
Answer: name of valuer
12. When an item of property, plant and equipment is revalued, what should be revalued?
A. a selection of assets picked at random
B. a selection of assets decided by management
C. the individual asset
D. the whole class of assets to which it belongs
Answer: the whole class of assets to which it belongs
13. Which of the following is not a component of cost of an asset?
A. refundable sales tax
B. purchase price
C. estimate of compulsory future dismantling costs
D. import duties
Answer: refundable sales tax
14. Which of the following is not an asset that falls under the scope of Ind AS 16?
A. assets held for sale in the normal course of business
B. tangible assets
C. assets held for the production or supply of goods or services
D. assets expected to be used for more than one period
Answer: assets held for sale in the normal course of business
15. What is the amount an asset could achieve if sold between knowledgeable, willing parties inan arm’s length transaction?
A. net present value
B. current value
C. fair value
D. written down value
Answer: fair value
16. An intangible asset with a finite useful life should be amortized over__________
A. the entity intends
B. a period determined by management
C. that useful life
D. no foreseeable limit
Answer: that useful life
17. Which of the following measurement models is not permitted for the subsequent measurement of intangible assets under Ind AS 38?
A. fair value model
B. revaluation model
C. capital assets pricing model
D. cost model
Answer: capital assets pricing model
18. Where is the amortization of an intangible asset recognized?
A. statement of financial position
B. equity
C. profit or loss
D. statement of cash flows
Answer: profit or loss
19. Which of the following is not a qualifying asset under Ind AS 23 Borrowing Costs?
A. made to order inventory
B. manufacturing plants
C. mass produced inventory
D. investment property
Answer: mass produced inventory
20. How should an asset be initially recognized in the financial statements?
A. measure at fair value
B. measure at market value
C. measure at cost
D. measure at net realizable value
Answer: measure at cost
21. The principal revenue-producing activities of an entity are called__________
A. operating activities
B. investing activities
C. financing activities
D. none of these
Answer: operating activities
22. Accounting in India is governed by the__________
A. income tax department
B. company law board
C. RBI
D. ICAI
Answer: ICAI
23. Activities that result in changes in the size and composition of the equity capital and borrowings of an entity are called________
A. investing activities
B. operating activities
C. financing activities
D. none of the above
Answer: financing activities
24. Under Ind AS 2, fixed production overheads should be allocated to items of inventory on the basis of ____ production capacity.
A. abnormal
B. actual
C. estimated
D. normal
Answer: normal
25. Total Number of Ind AS which are notified as of date?
A. 40 Ind
B. 43 Ind
C. 41 Ind
D. 42 Ind
Answer: 41 Ind
26. Which of the following items are excluded from the scope of Ind AS 2 Inventories?
A. assets held for sale in the ordinary course of business
B. inventories that are stated at net realizable value
C. inventories whose fair value is more than the cost
D. agricultural produce at the point of harvest
Answer: agricultural produce at the point of harvest
27. Total Number of IFRIC Interpretations which are notified as of date?
A. 25
B. 24
C. 23
D. 26
Answer: 23
28. A company cannot issue redeemable preference shares for a period exceeding _________.
A. 8 years
B. 20 years
C. 6 years
D. 7 years
Answer: 20 years
29. Total Number of IFRSs which are notified as of date?
A. 19 IFRS
B. 16 IFRS
C. 17 IFRS
D. 18 IFRS
Answer: 16 IFRS
30. Which of the following accounts can be transferred to capital redemption reserve account?
A. general reserve account
B. forfeited shares account
C. securities premium account
D. profit prior to incorporation
Answer: general reserve account
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